HOW IT BEGAN
The story of the diamond fraud scheme began with the exploitation of a vulnerability in the system. The question at hand was how the Russian wholesaler was able to consistently and deliberately deceive the most reputable diamond certification institution over an extended period.
In retrospect, the answer seems clear - mined diamonds are identical to lab grown diamonds on a molecular level. However, this was not the entirety of the scheme. The wholesaler, one of the largest in Russia, had been sending in a steady stream of mined diamonds to be certified. To test the waters, they gradually introduced clear lab grown diamonds and found that the lab was unable to distinguish between the two.
With this realization, the wholesaler began mixing lab grown diamonds into their regular shipment in large quantities, taking advantage of the fact that lab grown diamonds can now be made in a colorless form rather than the traditional yellow.
THE RARE FIND...
What ultimately led to the downfall of this scheme? How did such a seemingly foolproof and advanced operation get uncovered and exposed?
To fully understand the discovery, it is important to delve into some mathematics and science.
All man made diamonds are classified as "Type IIA." This designation signifies that the stones are created under controlled conditions with precise parameters and never exposed to oxygen, resulting in no chemical oxidation of the diamond. It is crucial to note, however, that such highly sought after oxidation-free diamonds are extremely rare in nature, with only about 2-5% of mined gem-quality diamonds receiving the prestigious "Type IIA" label. This fixed rarity was crucial in unraveling the Russian operation.
As more and more man made diamonds were being certified as mined diamonds, inconsistencies in probabilities became apparent and suspicions were aroused. Hen the lab noticed that there were an excessive number of "Type IIA" diamonds coming from just one individual supplier, the sheer quantity of this high grade originating from one place was statistically impossible. Further investigations finally uncovered the truth, causing the diamond industry to be shaken to its core.
Although it is uncertain how many artificial diamonds have been certified as natural and are still available in the market, the Russian company was immensely profitable, and so the number may be substantial.
THE NAUGHTY CORNER
Initially, there were many skeptics regarding the validity of the claims. As the claims seemed so incredible and hard to believe, no one took them seriously.
Our company, being one of the leading diamond companies, ultimately received a confirmation of the rumours from the Conglomerate when they presented us with an action plan. This confirmation forced us to cease all business and communication
with the Russian wholesaler since they were now permanently banned from the entire diamond industry for life.
However, the rumours were eventually proven true when our company, as one of the leading diamond companies, received formal confirmation from the Conglomerate when they presented us with a course of action. This confirmation compelled us to discontinue all business and communication with the Russian wholesaler as they were now permanently banned from the entire diamond industry for life.
This secretive operation was particularly significant as it brought lab grown diamonds to the forefront of the industry from the background. In other words, man made diamonds could no longer be considered inferior gems. The quality of lab grown diamonds has improved to the point where they are indistinguishable from natural diamonds and in some cases, even surpass their quality. In any case, it would take another year before the first legitimate lab grown stones would be available to the general public.
THE COVER UP
Due to the massive scale of this scandal, the mined diamond industry has sustained a significant and long-lasting impact. Currently, there is already a substantial number of man made diamonds in circulation that were certified and sold as natural diamonds. Additionally, even the world's most reputable lab could not distinguish between lab grown diamonds and mined diamonds, leading to numerous undetected stones slipping through their grasp.
In reaction to the scandal, all parties involved in the diamond mining industry felt embarrassed and financially hurt, so attempts were made to conceal the scandal to salvage their reputation.
SO WHY COME OUT NOW?
Our fundamental principle is to always be transparent and open with our customers, providing them with full disclosure about the industry. We believe it is our responsibility to give them in-depth and uncensored insights about the industry that no one else can openly provide.
Due to our unwavering commitment to the planet's well-being and its inhabitants, Novita Diamonds deals exclusively with lab grown diamonds Hong Kong and not mined ones, unlike our competitors who deal in both. This naturally makes our competitors biased; it would be in their best interest not to reveal stories like this that could deter potential buyers and negatively impact their financial performance.
We thank you for reading this article and hope it has given you a better understanding of the diamond industry. We hope you enjoyed this article or found it informative, so please share it with family, friends, and your significant other. During your next social gathering, whether in-person or virtual, you might have something interesting to discuss with them!
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